KMPG LLP has revamped its crypto management portfolio to improve investments. KPMG has partnered with the cryptocurrency market and network data provider Coin Metrics Inc. It gets to provide clients with Coin Metrics infrastructure and data products. It also allows them access to KPMG Chain Fusion.
Working together allows them to serve the expanding institutional adoption of crypto assets. The investors gain access to all the necessary products and services at a go.
The move by KPMG LLP will boost institutional investors’ uptake of cryptos the world over. This follows KPMG’s status as a world-leading firm. It is part of KPMG Global, with a presence in more than 147 countries.
Coin Metrics has also invested in top of the range products. Some of the newest products in its data suite are Atlas and Farum. Atlas provides raw on-chain data through a blockchain explorer API. Farum helps in risk management through monitoring and managing network attacks. It also manages fee volatility, unusual network events, and transaction reorganizations.
With all the products together, users would find it easier to adopt and manage crypto assets. These are some of the tools professional investors need. All the risk reduction tools are great for crypto adoption.
How KPMG is Creating an Open Financial System by Expanding Crypto Management
The world currently relies on a stable financial system by every measurable standard. The world economy works such that countries can export and import goods. Still, the market is not balanced.
Countries like the US and other developed countries have the upper hand. The US, for example, relies on the use of USD as the world’s reserve. For this, it can impose economic sanctions on countries it feels don’t follow its provisions. It has already sanctioned countries like Iran with dire economic sanctions.
Several developing countries also don’t have it easy in the world economic order. Most of their currencies are low value, hence struggle to balance trade. Their larger population also tend to lack financial access.
While the traditional currencies have been useful, they have limitations. Cryptocurrencies solve the issues by allowing access to financial services to everyone. It also seeks to provide an inclusive financial system. Its decentralized nature means no country or authority will have power over it. Also, there is no need for costly foreign exchanges.
Still, there is a long way to go before reaching the ultimate goal. It will grow in three steps; investment/speculation, institutional, and utility.
Digital currencies have been on the speculation stage for a long time. Unlike other assets, it started with retail investors. Crypto traders started accessing the virtual currencies from peer to peer trading. It then moved to the exchanges.
The crypto world is ready for institutionalization and utility. It yet has to achieve liquidity, trust, and accessibility. That is where KPMG expanding into crypto management comes in.
KPMG will help the cryptos meet all the necessary features to become institutionalized. It is one of the top accounting firms in the world, with a presence in several countries. It allows its current clients to invest in cryptos, thus achieving liquidity.
Several other top companies already rely on KPMG for financial advisory roles. They trust in the firm for all their financial services. It would not struggle to gain the trust for cryptos through the KPMG crypto management.
KPMG crypto management services help gain access through its wide presence. The firm is present in both developed and developing countries. It will not discriminate against the market, which gains the cryptos. For that, it will fuel crypto adoption for the ultimate open financial system.
What does KPMG expanding into crypto management mean for the Crypto future?
The future of crypto is always up for debate. This is as the digital currencies become more pronounced in the economy. Satoshi Nakamoto released Bitcoin as an alternative to fiat currencies. It is hard to tell whether it has taken the route the group envisioned when releasing the coin. What is sure, though, is that it has been successful.
The success of Bitcoin has led to the introduction of other virtual currencies like Ripple, Tether, and many more. Already there are thousands of crypto. Projects like Ethereum support the easy creation of other digital assets.
Blockchain technology has been more impactful in financial services. The digital currency services are drawing people from the central banks’ controlled financial system. People are embracing the new decentralized payment methods. Even fintechs are preferring Initial Coin Offering over Initial Public Offering for fundraising.
KMPG expanding into crypto management is another way cryptos edge the traditional currency economy. Most of the commercial banks avoided the cryptos in the early days. They believed they aided in illegal transactions and money laundering. It has since become difficult to do away with digital currencies. The only viable option is to join the crypto market.
As the cryptos become mainstream, the institutional investors are also picking it up. The banks and other hedge funds are not willing to lose their clients. For that, they have to offer crypto management services. Earlier, banks in the US had already got authorization to provide crypto custodian services. They will have to cooperate with the crypto exchanges for crypto management services.
The KPMG move into crypto management will attract more professional and institutional investors. The future of Bitcoin and other cryptos thus is regulations. The banks and other accounting firms like KPMG are under regulations. They follow several regulatory provisions. They also have regulators who ensure regular inspection for compliance.
KPMG will be reporting returns on crypto trading as it does for the other earnings. For that, the transactions on its platform are open for scrutiny by the authorities.
Soon enough, trading cryptos will be as easy as exchanging foreign currencies. It then will also abandon the decentralization it had built a name on. Either way, it’s great for investor security.
KPMG expanding into crypto management is what the cryptocurrency market needs. It opens up the virtual currencies for growth by encouraging access and trust. It is one of the major boosts for the crypto world. It will enhance uptake, institutionalization, and utility.